Tyre manufacturer ups dividend by 43%
The Goodyear Tire & Rubber Company is aiming to achieve US$3 billion in annual segment operating income by 2020. At the same time the company is planning to attain cumulative free cash flow of $4.3-$4.9 billion from 2017 to 2020.
Goodyear also updated its capital allocation plan growth capital expenditure and a shareholder return program of up to $4 billion. As part of that program, Goodyear’s Board of Directors has declared a quarterly dividend of 10 cents per share of common stock, a 43 per cent increase. The dividend is payable 1 December 2016, to shareholders of record on 1 November 2016. The payout represents an annual rate of 40 cents per share.
Goodyear also reaffirmed its previously communicated 2016 financial targets.
“The tyre industry is healthy, growing and offers attractive opportunities to grow profitably,” said chairman, CEO and president Richard J. Kramer. “Our strategy is built to take advantage of key industry drivers including the transition to increasingly complex, large-rim diameter tyres and the growing influence of empowered consumers in all aspects of the tire buying process.”
Kramer added, “We believe the combination of Goodyear’s innovation and technology leadership, industry-leading products and strong global brand provide us with a competitive advantage to execute our strategy and deliver on our performance targets.”